What is a business entity? Its an organization founded by one or more natural persons to facilitate specific business activities or to allow its owners to engage in a trade. Basically it is how you are identified as a business. The most common are the following 3: Business Entities Sole Proprietor - a business owned and run by one person and in which there is no legal distinction between the owner and the business entity. The owner is personally liable for the debts and liabilities of the business. Limited Liability Company (LLC) - It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. An LLC is not a corporation under state law; it is a legal form of a company that provides limited liability to its owners in many jurisdictions. If an LLC is formed and operated properly, the owners can be protected from such liability. Meaning if sued, your personal accounts and assets a...
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